Which firm has a greater return on equity

Assignment Help Financial Accounting
Reference no: EM131291908

Firm A and Firm B have debt-total asset ratios of 25 percent and 40 percent and returns on total assets of 8 percent and 7 percent, respectively. Which firm has a greater return on equity?

PLEASE SHOW SOLUTIONS.

Reference no: EM131291908

Questions Cloud

What is? debt? ratio : Rosewood Company had current assets of $562?, current liabilities of $393?, total assets of $772?, and? long-term liabilities of $200. What is? Rosewood's debt? ratio?
What is the ending balance in retained earnings : The following accounts and balances are taken from Moore? Company's adjusted trial? balance: What is the ending balance in Retained Earnings after the closing entries are? completed?
Ending balance in allowance for doubtful accounts : Jacob’s Hiking Store had $700,000 in credit sales in the first year of business. If Jacob estimates 20% of the sales will be uncollectible, what is the bad debt expense in the first year? What is the ending balance in the allowance for doubtful accou..
What is the addition to retained earnings : Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax rate of 35 percent. What is the net income for the firm? Suppose the company paid out #30,000 in cash dividends. What is t..
Which firm has a greater return on equity : Firm A and Firm B have debt-total asset ratios of 25 percent and 40 percent and returns on total assets of 8 percent and 7 percent, respectively. Which firm has a greater return on equity?
Assume that this level of activity is within relevant range : With 4,000 machine-hours in a month as an activity level, Brant Corporation's total variable production engineering cost is $154,200 and its total fixed production engineering cost is $129,000. What would be the total production engineering cost per ..
Four operating segments : For the first quarter of 2018, Jorge Limited has four operating segments. The total income from operations is $213,000. Should Jorge Limited eliminate one or both of the unprofitable segments? Explain. Prepare analyzes to support your answer. Compare..
Determine the transaction price for revenue contract : On December 1, 2017, AwakeAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers. The candy bars sell for $3 per bar. In addition, AwakeAllNight pays Campus Grocers a $900 “placement fee” to ensure that its candy bars are always sto..
Compute the contribution margin ratio for each approach : Compute the contribution margin ratio for each approach. Interpret the contribution margins. What is the beak-even point in sales for each approach? What are the implications of your findings? Determine the degree of operating leverage for each appro..

Reviews

Write a Review

Financial Accounting Questions & Answers

  You are the vice president of operations for a small

you are the vice president of operations for a small manufacturing company that uses the absorptive method of

  What will be the bad debt expense for the year

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $390,000; allowance for uncollectible accounts at the beginning of the year, $28,000 (credit balance);  What will be the  ..

  What amount should fisher report as its investment

What amount should Fisher report as its Investment in Steel on its December 31, 2015, balance sheet?-  What amount should Fisher report as Equity in Earnings of Steel on its December 31, 2015 income statement?

  Adjusting entry necessary at the end of the fiscal period

A business pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at the end of the fiscal period ending on a Thursday is

  What would the expected maintenance cost

Bosco Bonnet, a local trucker, owns and operates his own delivery service. He has 1990 1-ton truck. Bosco’s biggest expense lately has been maintenance on the truck. He is interested in budgeting his costs for the months ahead. Using the high-low met..

  Dr heinz transfers property to an irrevocable trust with 12

dr. heinz transfers property to an irrevocable trust with 12 income interest to dr. heniz and 12 income interest to

  Why is working capital important to management

The Sanchez Corporation is preparing its 2012 balance sheet. The company records show the following selected amounts at the end of the accounting period, December 31, 2012.

  What is the present value of all your profits

Your business is expected to generate a $40.000 profit at the end of year 1 and profit will increase by 10% per year through year 10. if you can earn 5% annual interest compounded annually, what is the present value of all your profits over the next ..

  Prepare income statement and a statement of retained earning

Journalize the annual adjusting entries that were made. - Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014, and an unclassified balance sheet at December 31.

  The AICPA has the authority to set standards and make rules

The AICPA has the authority to set standards and make rules in all the following areas EXCEPT:

  Collect industrial benchmarks or ratios for the ratios

Collect the most recent 10-K, including financial statements, their footnotes, and management discussion for one of the following primary firms: In addition, you need to collect industrial benchmarks or ratios for the ratios you need to calculate (Se..

  Attempt to reduce his tax burden

This is first time Mike agreed to such a payment and he is obligated to outfit one trip per year for next three summers starting this year. How much income must Mike identify in each of the next three years if he is attempting to reduce his tax bu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd